Optimizing Lot Tracking and Control for Food and Beverage eCommerce

Introduction

The eCommerce food and beverage industry has seen tremendous growth in recent years, accelerated by the COVID-19 pandemic. From 1-hour grocery deliveries to direct-to-consumer snack companies, online food shopping has become increasingly popular. However, the perishable nature of these products and their expiration dates create unique challenges for logistics and inventory management.

For food and beverage brands selling online, proper tracking and traceability of products is essential. Without an established process, recalled or expired items can make their way to fulfillment, potentially damaging a brand's reputation or leading to costly product recalls. This is where lot tracking and control come into play as critical inventory management practices.

In this article, we'll explore what lot tracking and control entail, why they are particularly important for food and beverage eCommerce, and how partnering with a third-party logistics (3PL) provider can help optimize these processes. We'll also examine how our Digital Logistics Platform at FreightAmigo can support food and beverage brands in implementing effective lot tracking systems.

Understanding Lot Tracking and Control

Lot tracking and control are best practices in warehouse management that help organize and store products to ensure quality control, traceability, and proper fulfillment. These processes allow businesses to trace specific ingredients or products back to their suppliers and track them throughout the supply chain.

Key Components of Lot Tracking

Lot tracking typically organizes products by:

• Expiration date
• Manufacturer
• Production date

For example, storing products by expiration date ensures that items with the earliest expiration dates are used first, reducing waste and improving inventory turnover.

Lot Control Methods

To implement lot control effectively, warehouses can track based on:

• License plates
• Bins
• Individual boxes

The license plate method is often the most efficient, requiring less warehouse space and manpower. License plates typically include shelf data, expiration date, and production date, allowing warehouse workers to easily scan and access the necessary information for recall reports.

Benefits of Lot Tracking and Control

Implementing robust lot tracking and control systems offers several advantages:

• Easily identify and address product issues
• Reduce human error in inventory management
• Identify inventory trends for better forecasting
• Understand true landing costs
• Minimize waste, spillage, and contamination
• Achieve regulatory compliance

Why Lot Tracking is Crucial for Food and Beverage eCommerce

For food and beverage brands selling online, lot tracking and control are not just best practices - they're often legal requirements. Here's why these processes are particularly critical in this industry:

Regulatory Compliance

Food and beverage products sold directly to consumers must comply with regulations set by the US Food and Drug Administration (FDA). Brands in this space must use FDA-certified warehouses and implement systems to trace products to their origin. Lot tracking is essential for meeting these requirements and avoiding costly fines or recalls.

Quality Control

With perishable goods, maintaining quality throughout the supply chain is paramount. Lot tracking allows brands to quickly identify and isolate any quality issues, minimizing the impact on customers and the business.

Efficient Recalls

In the event of a recall, lot tracking enables brands to pinpoint exactly which products are affected. This precision can save significant money and resources compared to broad, sweeping recalls.

Expiration Date Management

For products with limited shelf lives, lot tracking helps ensure that inventory is rotated properly and that customers receive fresh products.

How FreightAmigo's Digital Platform Enhances Lot Tracking

At FreightAmigo, we understand the unique challenges faced by food and beverage eCommerce brands. Our Digital Logistics Platform offers several features that can significantly enhance lot tracking and control:

Real-time Inventory Visibility

Our platform provides a comprehensive view of inventory across multiple warehouses, allowing brands to track lots in real-time and make informed decisions about stock rotation and fulfillment.

Integration with FDA Compliance Systems

We ensure that our systems align with FDA requirements, making it easier for brands to maintain compliance and generate necessary reports for audits or inspections.

Automated Alerts and Notifications

Our system can be configured to send alerts for approaching expiration dates or when stock levels of certain lots fall below predetermined thresholds, helping prevent waste and stockouts.

Advanced Analytics for Trend Identification

By analyzing lot data over time, our platform can help identify trends in product life cycles, seasonal demand fluctuations, and more, enabling better forecasting and inventory management.

Streamlined Recall Management

In the event of a recall, our system can quickly generate reports of affected lots, their current locations, and which customers have received products from these lots, facilitating swift and precise recall actions.

The Value of Partnering with a 3PL for Lot Tracking

While implementing effective lot tracking systems is crucial, it can be complex and resource-intensive for brands to manage in-house. This is where partnering with a third-party logistics (3PL) provider like FreightAmigo can provide significant value:

Expertise and Experience

3PL providers specialize in logistics and inventory management, bringing a wealth of experience in implementing and optimizing lot tracking systems across various industries.

Advanced Technology

Leading 3PLs invest in state-of-the-art warehouse management systems and Digital Logistics Platforms that offer robust lot tracking capabilities, often beyond what individual brands could implement on their own.

Scalability

As your business grows, a 3PL can easily scale operations to handle increased volume without requiring significant additional investment from your company.

Focus on Core Business

By outsourcing logistics and lot tracking to a 3PL, food and beverage brands can focus their resources on product development, marketing, and other core business activities.

Regulatory Compliance Support

Reputable 3PLs stay up-to-date with changing regulations and can help ensure your operations remain compliant with FDA and other relevant standards.

Conclusion

Effective lot tracking and control are essential for food and beverage eCommerce brands to ensure product quality, maintain regulatory compliance, and optimize inventory management. While implementing these systems can be challenging, partnering with an experienced 3PL provider like FreightAmigo can significantly streamline the process.

Our Digital Logistics Platform offers robust lot tracking capabilities, real-time inventory visibility, and advanced analytics to help food and beverage brands optimize their supply chain operations. By leveraging our expertise and technology, brands can focus on growing their business while ensuring their products are tracked efficiently from production to delivery.

As the eCommerce food and beverage industry continues to evolve, having a strong lot tracking system in place will be crucial for success. Whether you're just starting out or looking to optimize your existing operations, consider how FreightAmigo's Digital Logistics Solutions can help you implement effective lot tracking and control for your brand.